With Supply Chain Comes an Evolutionary Procedure

WITH SUPPLY CHAIN COMES AN EVOLUTIONARY PROCEDURE 

Along this evolutionary pathway, firms will pass through one level at a time and must determine whether further progress is warranted. The levels 

Data Networks + e-Commerce, supply chain and distribution software partners (Aurora, Oracle, SAP, Manugistics, etc.) I 

Level 1, intemal/functional, focuses on sourcing and logistics, concentrating on internal needs and business unit efficiency, while neglecting organizational synergies. 

In the area of logistics, transportation costs are reduced, warehouse space is matched with need, and inventories are scrutinized for possible reduction. Transportation management systems (TMS) and warehouse management systems (WMS) are features of this part of the evolution. Most firms finish Level 1 with an improved order entry and order management system that eliminates errors that confound such systems and speeds the cycle time from receipt of order to receipt of cash payment. 

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